please use excel to solve this and format it the same way! thank you Paste F17 A

please use excel to solve this and format it the same way! thank you

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Paste F17 A > B Arial BIU fx C D 10 A A A E F G ||| H I J K 6 A 20-year, 6% quarterly coupon bond with a par value of $10,000 may be called in 5 years at a call price of $10,200. The bond sells for $10.500. (Assume that the bond has just been Issued.) 7 8 9 Basic Input Data: 10 Years to maturity: 11 Periods per year: 12 Periods to maturity: 13 Coupon rate: 14 Par value: 15 Periodic payment 16 Current price 17 Call price: 18 Years till callable: 19 Periods till callable: 20 21 a. What is the bond's yield to maturity? 22 26 28 24 2222222352313353 Peridodic YTM Annualized Nominal YTM 27 b. What is the bond's current yield? 29 Current yield = 30 Current yield = 36 Cap. Gain/loss yield = 37 Cap. Gain/loss yield= 38 Cap. Gain/loss yield= 39 Current yield = 34 c. What is the bond's capital gain or loss yield? 1 40 Note that this is an economic loss, not a loss for tax purposes. 41 42 d. What is the bond's yield to call? 43 Hint: This is a nominal rate, not the effective rate. Nominal rates are generally quoted. 44 Here we can again use the Rate function, but with data related to the call. 45 46 47 48 Peridodic YTC = Annualized Nominal YTC Hint: Write formula in words. Hint: Cell formulas should refer to Input Section (Answer) Hint: Write formula in words. Hint: Cell formulas should refer to Input Section (Answer) This is a nominal rate, not the effective rate. Nominal rates are generally quoted. 49 The YTC is lower than the YTM because if the bond is called, the buyer will lose the difference between the call price and the current 50 price in just 4 years, and that loss will offset much of the interest imcome. Note too that the bond is likely to be called and replaced, 51 hence that the YTC will probably be earned. 52 53 NOW ANSWER THE FOLLOWING NEW QUESTIONS: 54 55 e. How would the price of the bond be affected by changing the going market interest rate? Assume Norminal Market rate 56 is 6%. (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that 57 the bond will be called if and only if the going rate of interest falls below the coupon rate. That is an oversimplification, but 58 assume it anyway for purposes of this problem.) 59 60 Nominal market rate, r 61 Value of bond if it's not called: 62 Value of bond if it's called: 63 0% The bond would not be called unless r Paste F17 A > B Arial BIU fx C D 10 A A A E F G ||| H I J K 6 A 20-year, 6% quarterly coupon bond with a par value of $10,000 may be called in 5 years at a call price of $10,200. The bond sells for $10.500. (Assume that the bond has just been Issued.) 7 8 9 Basic Input Data: 10 Years to maturity: 11 Periods per year: 12 Periods to maturity: 13 Coupon rate: 14 Par value: 15 Periodic payment 16 Current price 17 Call price: 18 Years till callable: 19 Periods till callable: 20 21 a. What is the bond's yield to maturity? 22 26 28 24 2222222352313353 Peridodic YTM Annualized Nominal YTM 27 b. What is the bond's current yield? 29 Current yield = 30 Current yield = 36 Cap. Gain/loss yield = 37 Cap. Gain/loss yield= 38 Cap. Gain/loss yield= 39 Current yield = 34 c. What is the bond's capital gain or loss yield? 1 40 Note that this is an economic loss, not a loss for tax purposes. 41 42 d. What is the bond's yield to call? 43 Hint: This is a nominal rate, not the effective rate. Nominal rates are generally quoted. 44 Here we can again use the Rate function, but with data related to the call. 45 46 47 48 Peridodic YTC = Annualized Nominal YTC Hint: Write formula in words. Hint: Cell formulas should refer to Input Section (Answer) Hint: Write formula in words. Hint: Cell formulas should refer to Input Section (Answer) This is a nominal rate, not the effective rate. Nominal rates are generally quoted. 49 The YTC is lower than the YTM because if the bond is called, the buyer will lose the difference between the call price and the current 50 price in just 4 years, and that loss will offset much of the interest imcome. Note too that the bond is likely to be called and replaced, 51 hence that the YTC will probably be earned. 52 53 NOW ANSWER THE FOLLOWING NEW QUESTIONS: 54 55 e. How would the price of the bond be affected by changing the going market interest rate? Assume Norminal Market rate 56 is 6%. (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that 57 the bond will be called if and only if the going rate of interest falls below the coupon rate. That is an oversimplification, but 58 assume it anyway for purposes of this problem.) 59 60 Nominal market rate, r 61 Value of bond if it's not called: 62 Value of bond if it's called: 63 0% The bond would not be called unless r